On July 1, 20X3, Roxy Co. obtained fire insurance for a three-year period at an annual premium of $72,000 payable on July 1 of each year. The first premium payment was made July 1, 20X3. On October 1, 20X3, Roxy paid $24,000 for real estate taxes to cover the period ending September 30, 20X4. This prepayment was made to obtain a discount. In its Decemnber 31, 20X3, Balance Sheet, Roxy should report prepaid expenses of: O $60,000. O s46,000. O $54,000. O $36,000